Dan Irving Cytryn, Esq.: June 2009 Archives

June 7, 2009

Reducing Your Insurance Rates While Maintaining Quality Insurance

 

The cost to insure your vehicles is "all over the place". Buyers should definitely shop around in order to get the least expensive rates. BUT HOLD ON: Saving a few insurance dollars but going from a good insurance carrier to one that's bad, doesn't make good sense. You have to weigh the price savings against the quality of the service AND payments that you'll get if you make a claim with your insurance carrier, or a claim is made against you or a family member.

The first factor to consider is the quality of the company. We maintain a rating of all major insurance carriers on our website, grading them from A to F, with an "A" meaning the company pays liability claims and uninsured motorist claims extremely reasonably, and attempts to avoid litigation (court), if at all possible. The "F" company will 'chince you to death'. With a lower rated company, you're much more likely to end up in a courtroom, or at least in litigation, than an "A" rated company.

You should simply get the best company in light of the rates that are charged.

Company rates may vary based upon large numbers of factors, such as discounts for drivers over certain ages, surcharges for drivers under certain ages, etc.

What kind of deductible that you can afford will also affect your insurance premiums. You should always take the highest deductible that you can afford to take, understanding that if you are in an accident, you possibly will have to come out of pocket for that deductible.

At minimum, always purchase uninsured motorist coverage equal to your bodily injury liability coverage. In addition, try to purchase stacking coverage if you have more than one resident relative vehicle in your household, as stacking coverage will, for example, double your coverage if you have two resident relative vehicles in your household.

Medical payments coverage is probably a coverage that you can do without if you and your family members have major medical health insurance coverage. Alternatively, if you have an HMO, you may want to consider purchasing additional medical payments coverage.

Other coverages such as rental, towing, storage, etc. are so infrequently used, and not mandatory, that you can avoid purchasing them.

An excellent article recently written that you should review before purchasing or renewing your insurance is called: "Your 5-minute guide to car insurance".

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